AGENDA DATE: 10/20/2021
TITLE:
Title
Ordinance to Implement a Cigarette Tax
BODY
SUBJECT/PROPOSAL/REQUEST: Public hearing to consider the adoption of an ordinance to amend County Code 15, Taxation, to implement a cigarette tax
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Richardson, Kamptner, Bessette, Birch, Allshouse, Lin
PRESENTER (S): Lori Allshouse
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: During the 2020 General Assembly session, Virginia counties received the authority to levy taxes on the sale of cigarettes, effective July 1, 2021. State legislation encourages local cigarette stamping and tax collection through regional cigarette tax boards and establishes a state-level taskforce to develop methods to modernize stamping and tax collection.
On December 2, 2020, the Board discussed this new enabling authority and directed staff to move forward with a process to support the development of a regional board to administer cigarette taxes for this region, and to consider this tax through an equity lens, provide estimated revenue projections, and schedule a public hearing in the future on an ordinance to levy the tax.
Albemarle County participated in several informational meetings with TJPDC staff and members of other local jurisdictions about establishing a regional entity to administer this tax.
On March 22, 2021, staff provided an update on the cigarette tax equity impact assessment and provided information regarding TJPDC's discussions with area localities about the potential development of a regional cigarette tax board.
On May 5, 2021, the Board adopted a Resolution of Interest in participating in a regional cigarette tax board because its establishment would promote the uniform administration of local cigarette taxes throughout the region, and on September 1, 2021, the Board held a public hearing and adopted an ordinance to approve the formation of the Blue Ridge Cigarette Tax Board (BRCTB), as well as an...
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